China New Town Development Co Ltd Net Income surged on 132% in 2015 and Revenue surged on 18.0%
24/02/2016 • About China New Town Development Co Ltd (
$1278) • By InTwits
China New Town Development Co Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- China New Town Development Co Ltd doesn't have a profitable business model yet: 2015 ROIC is -3.1%
- The company operates at negative EBITDA Margin: -258.0%
- China New Town Development Co Ltd spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2011-2015 is 0.0%. Average EBITDA Margin for the same period was -26.6%0
- China New Town Development Co Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 56.8%. At the same time it's a lot of higher than industry average of 19.7%.
- CAPEX is quite volatile: 38.7 in 2015, 34.0 in 2014, 221 in 2013, 176 in 2012, 710 in 2011
- The company has unprofitable business model: ROIC is at -3.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
China New Town Development Co Ltd ($1278) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 640.5 | 935.0 | 608.3 | 56.8 | 67.0 | 18.0% |
| Gross Profit | 336.9 | 366.9 | 254.7 | -594.4 | 54.6 | -109.2% |
| SG&A | | 249.4 | 143.1 | 91.3 | 97.7 | 7.1% |
| EBITDA | -124.0 | 158.1 | 169.5 | -644.7 | -172.9 | -73.2% |
| Net Income | -200.7 | 14.4 | -259.3 | -205.2 | 65.1 | -131.7% |
Balance Sheet
|
|---|
| Cash | 347.4 | 229.3 | 332.3 | 795.5 | 1,362.5 | 71.3% |
| Short Term Debt | 757.2 | 1,235.6 | 1,339.0 | 896.0 | 365.0 | -59.3% |
| Long Term Debt | 2,383.1 | 1,948.5 | 1,797.9 | 0.0 | 1,599.5 | |
Cash flow
|
|---|
| Capex | 710.4 | 176.3 | 221.5 | 34.0 | 38.7 | 13.6% |
Ratios
|
|---|
| Revenue growth | -56.7% | 46.0% | -34.9% | -90.7% | 18.0% | |
| EBITDA growth | -117.3% | -227.4% | 7.2% | -480.4% | -73.2% | |
| Gross Margin | 52.6% | 39.2% | 41.9% | -1,046.2% | 81.4% | 1,127.6% |
| EBITDA Margin | -19.4% | 16.9% | 27.9% | -1,134.8% | -258.0% | 876.9% |
| Net Income Margin | -31.3% | 1.5% | -42.6% | -361.1% | 97.2% | 458.3% |
| SG&A, % of revenue | | 26.7% | 23.5% | 160.6% | 145.8% | -14.8% |
| CAPEX, % of revenue | 110.9% | 18.9% | 36.4% | 59.9% | 57.7% | -2.2% |
| ROIC | -2.9% | 1.4% | 1.4% | -11.6% | -3.1% | 8.4% |
| ROE | -7.7% | 0.6% | -10.1% | -6.9% | 1.8% | 8.7% |
| Net Debt/EBITDA | | 18.7x | 16.5x | | | 0.0x |
Revenue and profitability
China New Town Development Co Ltd's Revenue surged on 18.0% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 877 pp from -1,135% to -258% in 2015.
Gross Margin jumped on 1,128 pp from -1,046% to 81.4% in 2015. SG&A as a % of Revenue dropped on 14.8 pp from 161% to 146% in 2015.
Net Income marign jumped on 458 pp from -361% to 97.2% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 57.7% in 2015. China New Town Development Co Ltd's CAPEX/Revenue surged on 38.9 pp from 18.9% in 2012 to 57.7% in 2015. It's average level of CAPEX/Revenue for the last three years was 51.4%.
Return on investment
The company operates at negative ROIC (-3.14%) and low but positive ROE (1.83%). ROIC increased on 8.4 pp from -11.6% to -3.1% in 2015. ROE increased on 8.7 pp from -6.9% to 1.8% in 2015.
Leverage (Debt)
Debt level is -1.5x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2015. Debt jumped on 119% in 2015 while cash surged on 71.3% in 2015.
Appendix 1: Peers in Real Estate
Below we provide China New Town Development Co Ltd benchmarking against other companies in Real Estate industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Common Splendor International Health Industry Group Ltd ($286) | -0.9% | -0.5% | 1.9% | 4,120.2% | |
| Landsea Green Properties Co Ltd ($106) | -91.1% | -35.1% | -51.2% | 3,097.3% | |
| LVGEM China Real Estate Invest ($95) | -0.1% | -27.5% | -21.9% | 3,008.3% | |
| Rivera Holdings Ltd ($281) | 222.2% | 197.1% | -89.9% | 2,067.2% | |
| Ceneric Holdings Ltd ($542) | -94.0% | -73.9% | -49.8% | 1,922.5% | |
| |
|---|
| Median (172 companies) | 15.5% | 15.2% | 13.1% | 5.1% | 2.3% |
|---|
| China New Town Development Co Ltd ($1278) | | 46.0% | -34.9% | -90.7% | 18.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tern Properties Co Ltd ($277) | 96.9% | 96.7% | 98.4% | 98.4% | 98.7% |
| GR Properties Ltd ($108) | 37.4% | 39.3% | | 98.2% | |
| Renhe Commercial Holdings Co Ltd ($1387) | 71.1% | 79.0% | 95.2% | 97.9% | |
| YT Realty Group Ltd ($75) | 91.5% | 94.4% | 96.6% | 96.7% | |
| ITC Properties Group Ltd ($199) | 29.8% | 22.8% | 92.9% | 95.2% | 62.7% |
| |
|---|
| Median (154 companies) | 43.4% | 42.1% | 40.0% | 39.2% | 48.6% |
|---|
| China New Town Development Co Ltd ($1278) | 52.6% | 39.2% | 41.9% | -1,046.2% | 81.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| ITC Properties Group Ltd ($199) | 24.0% | -125.5% | -2,995.7% | 1,685.3% | -525.1% |
| Beijing Properties Holdings Ltd ($925) | 33.2% | -606.3% | 2,162.6% | 224.3% | |
| Chinese Estates Holdings Ltd ($127) | 340.9% | 356.2% | 91.6% | 195.5% | |
| Zall Development Group Ltd ($2098) | 73.6% | 105.3% | 133.1% | 143.2% | |
| Ceneric Holdings Ltd ($542) | -5.9% | -382.7% | -1,024.0% | 126.8% | |
| |
|---|
| Median (172 companies) | 35.4% | 28.9% | 28.1% | 26.9% | 34.7% |
|---|
| China New Town Development Co Ltd ($1278) | -19.4% | 16.9% | 27.9% | -1,134.8% | -258.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| LT Commercial Real Estate Ltd ($112) | 0.0% | 0.0% | 18.0% | 27,965.5% | |
| ITC Properties Group Ltd ($199) | 25.6% | 56.2% | 4,202.4% | 1,304.7% | 189.7% |
| Wanda Hotel Development Co Ltd ($169) | | 5.9% | 24.1% | 1,091.1% | |
| Pacific Century Premium Developments Ltd ($432) | 6.5% | 2.9% | 323.1% | 351.2% | |
| Liu Chong Hing Investment Ltd ($194) | 9.4% | 18.5% | 6.1% | 269.7% | |
| |
|---|
| Median (173 companies) | 5.9% | 5.3% | 6.1% | 4.5% | 7.2% |
|---|
| China New Town Development Co Ltd ($1278) | 110.9% | 18.9% | 36.4% | 59.9% | 57.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Rykadan Capital Ltd ($2288) | 17.2% | -1.8% | -2.6% | 48.4% | -3.7% |
| LVGEM China Real Estate Invest ($95) | 0.2% | -0.2% | -1.1% | 22.1% | |
| Zall Development Group Ltd ($2098) | 39.0% | 19.2% | 17.6% | 18.7% | |
| China Overseas Land & Investment Ltd ($688) | 18.0% | 18.4% | 15.1% | 18.5% | |
| Hong Kong Ferry Holdings Co Ltd ($50) | 4.7% | 3.8% | 0.6% | 18.0% | |
| |
|---|
| Median (176 companies) | 4.6% | 4.0% | 3.9% | 3.8% | 2.3% |
|---|
| China New Town Development Co Ltd ($1278) | -2.9% | 1.4% | 1.4% | -11.6% | -3.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Properties Group Ltd ($1838) | 16.9x | 43.0x | 21.4x | 1,523.0x | |
| SRE Group Ltd ($1207) | 10.6x | 14.1x | 24.7x | 1,184.6x | |
| Cheuk Nang Holdings Ltd ($131) | 53.2x | | 177.3x | 901.7x | |
| Tian An China Investment Co Ltd ($28) | 2.4x | 13.2x | 15.1x | 486.6x | |
| Greenland Hong Kong Holdings Ltd ($337) | 3.7x | | 6.2x | 49.3x | |
| |
|---|
| Median (140 companies) | 2.1x | 2.3x | 2.7x | 3.0x | 1.5x |
|---|
